Calculate production rates over first five years

Reference no: EM131264187

Tech Tools Manufacturing Case

Results& Recommendations

Kurt is unsure of how to organize the information to help him decide whether or not to start producing the Beta. He is also unsure of how the introduction of a second product will affect his operations and profitability.

Develop/calculate the following:

Depreciation (utilizing MACRS 7 year schedule)
Loan Interest
Production rates over first five years
Labor costs, billed labor rates, including benefits
Direct expenses (labor and materials)
Under new proposal (second five years)
Depreciation and loan interest
Revised production rates for Alpha and develop forecast of Direct Labor Hours for second five year period
Production rates for Beta
Systems Engineer labor costs (hourly wage, billable rate including benefits)
Identify Overhead costs
Identify cost driver
Allocate overhead costs to both Alpha & Beta to determine earnings per unit
Develop Income & Cash Flow statements

Conduct your analysis:

From a profitability perspective, should Kurt pursue the Beta?
What do you specifically attribute to your recommendation to pursue or not?
Under what conditions could your recommendation change?

Attachment:- Assignment.rar

Reference no: EM131264187

Questions Cloud

What trade sales promotion tools does he use : What does Ron Popeil bring to personal selling that makes him so effective? -What trade sales promotion tools does he use? Why does he use sales promotion tools when he is selling direct to consumers?

Draw a network diagram to represent the movement : Draw a network diagram to represent the movement from origin (node 1) to destination or sink (node 10) clearly indicating the stages and nodes

Level of activity is within the relevant range : Kaelker Corporation reports that at an activity level of 8,100 units, its total variable cost is $573,480 and its total fixed cost is $84,650. What would be the total cost, both fixed and variable, at an activity level of 8,300 units? Assume that thi..

Company incurred actual total manufacturing overhead costs : Osborn Manufacturing uses a predetermined overhead rate of $21.20 per direct labor-hour. This predetermined rate was based on 8,120 estimated direct labor-hours and $172,144 of estimated total manufacturing overhead. The company incurred actual total..

Calculate production rates over first five years : Develop/calculate the following: Depreciation (utilizing MACRS 7 year schedule), Loan Interest, Production rates over first five years and Labor costs, billed labor rates, including benefits

Explain why the phase margin is not defined for the system : For a gain of 0.5, derive the gain margin and phase margin of the systems of Problem 4.6 analytically. Let T =5 1 with no loss of generality because the value of ωT in radians is all that is needed for the solution.

Calculate the before-tax and after-tax costs of debt : Find the net proceeds from sale of the bond, Nd? Show the cash Flows from the firm's point of view over the maturity of the bond. Calculate the before-tax and after-tax costs of debt.

Underapplied or overapplied manufacturing overhead : Osborn Manufacturing uses a predetermined overhead rate of $21.20 per direct labor-hour. This predetermined rate was based on 8,120 estimated direct labor-hours and $172,144 of estimated total manufacturing overhead. The company incurred actual total..

How vans use giveaways and contests to market its products : How does Vans use giveaways and contests to market its products? - Why do these strategies work so well for Vans?

Reviews

len1264187

11/3/2016 2:45:17 AM

I need someone to provide me with the requested report as well as the excel sheet as mentioned in the below mentioned attachments with the step by step details. Your work should be submitted as two attachments (as indicated above). Your answers should be presented as a report in a text document, including any conclusions you have made and any assumptions you have made. You should clearly state where assumptions are being made. You must also include the spreadsheets that SHOW your work.

Write a Review

Required(*) Message

User Account

All Pages